HDFC relationship manager steals clients ₹3 Crore

• Do you have money saved in a bank? Chances are, you do – just like millions of others.
• But what happens when the people working there break your trust and steal your hard-earned savings?
• This is what an HDFC 27-year-old Relationship Manager did to her client.

What just happened at HDFC?

HDFC Bank, one of India’s most trusted financial institutions, finds itself embroiled in a shocking scandal.

Meenakshi Kapuria, a 53-year-old depositor, accused Payal Kothari, her 27-year-old relationship manager, of breaching her trust.

Kothari allegedly convinced Kapuria to hand over signed blank cheques, promising investments in high-return schemes like mutual funds and gold bonds.

The heist

Instead of investing the money, Kothari reportedly broke Kapuria’s fixed deposits and rerouted ₹3 crore into fake accounts, eventually transferring it to her own.

No alerts

The fraud went undetected because Kothari allegedly altered Kapuria’s registered email and mobile number, ensuring no transaction alerts reached the victim.

Court’s intervention

The Bombay High Court took a stern stance on the matter, exposing glaring flaws:

1. Delayed action

The court reprimanded the Mumbai Police for acting only after the complainant approached the judiciary. “Why does an arrest have to be made only when a complainant comes to the court?” asked Justice Revati Mohite-Dere.

2. Accountability of HDFC Bank

The court lambasted HDFC bank for negligence, questioning, “Is there no accountability of any bank when money is siphoned off under their nose?”

3. Role of police

Zonal DCP Dikshit Gedam was summoned to explain the handling of the case. The investigation has since been reassigned, and a departmental inquiry into alleged police negligence is underway.

Broader concerns

• Senior Citizens at Risk: Justice Mohite-Dere highlighted that many senior citizens rely on fixed deposits for financial security, making such breaches intolerable.
• Systemic Lapses: The court observed that the case reflects broader issues in banking and law enforcement, with Justice Mohite-Dere emphasizing, “This can’t be tolerated.”

Unanswered questions

Why No Alerts?: The alteration of Kapuria’s contact details raises serious concerns about the bank’s safeguards.

Involvement of Others: Kapuria alleges more bank officials were complicit. Are internal checks robust enough to prevent such collusion?

Police Credibility: The pressure on the complainant to settle with the accused and delayed arrests have tainted the investigation’s integrity.

Lessons for banks and regulators

1. Stronger Internal Controls: Banks must implement stricter verification protocols to prevent tampering with customer records.
2. Employee Vetting and Monitoring: A robust system to evaluate and monitor employee behavior could mitigate such risks.
3. Consumer Awareness: Banks should educate customers about safeguarding their financial details and detecting fraud.
4. RBI’s Role: As the banking regulator, the RBI must ensure accountability and compliance with its fraud management guidelines.

Looking ahead

The High Court has summoned senior HDFC Bank officials and RBI representatives for the next hearing on December 13.

Until then, the question looms large: can we still trust our banks?